Strata management refers to a sector of property management involving the daily operations and management of a property that is owned by multiple parties and has several units that utilize common amenities. It is also known as body corporate management.
Australia is the origin of strata management services, where a concept of property law known as strata title is used to manage jointly owned apartment buildings on multiple levels called strata. Other countries to have adopted this system include the UAE, the Philippines, and India.
The Role of a Strata Manager
The primary rule of a strata manager is to supervise the daily management of strata properties. The managers are collectively appointed by the individuals who own the property under management.
It is worth noting that a property can have multiple strata managers, depending on its size and complexity. Strata managers often have the aptitude and infrastructure that makes them better-suited to administrate properties on behalf of the real owners.
The roles of a strata manager and the working terms are defined by the contract between them and the owners. The following are some of the common functions performed by strata management companies.
The strata manager has to ensure that the occupants of the properties they are administrating live comfortably. If the rooms need renovation, they are the first to get contacted. In some cases, the manager can approve minor repairs without seeking approval from the owners.
Keeping and Updating Records
A majority of property owners like delegating the duty of keeping and updating records to strata managers. Some of these documents include notices and minutes of strata committee meetings, voting papers, signed agreements, and so forth.
Financial Management and Taxation
Another duty of a strata manager is to ensure that bills get paid on time. The owners’ corporation must establish administrative and sinking funds to make up for the costs of these expenses. The administrative funds cover recurrent operational expenditures while the sinking fund is used for future capital-related expenses.
Additionally, the strata manager prepares budgets before submitting them to owners for reviews and subsequent approval. They also ensure that proper owners get their payment on time and monitor all invoices that are relevant to the business.
Organization and Administration of Meetings
The strata manager is the link between the occupants and the property owners. As such, they handle any issue raised by the tenant that is aimed at the owner. They also deal with any queries raised by prospective buyers.
Besides ensuring that the property has insurance, the manager handles all claims and ensures that funds reach the claimant when issued. By request, the manager can chair general meetings and keep records of the minutes from such conventions.
Ensuring Regulatory Compliance
Lastly, the strata manager has to make sure that the property under their watch complies with the local building and safety requirements. Since these laws change over time, the manager is expected to adapt to any changes when required by the regulatory bodies.